Small Liquor Store Business Plan Template

Small Liquor Store business plan for starting your own business

One of the most lucrative businesses that you can get into right now is a small liquor store. That’s why we have brought this business plan for a liquor store so that you can easily start your own business. This business does not require a lot of starting capital or any experience.

If you are looking to learn how to write a business plan for a liquor store, you are in the right place. We will introduce you to all the aspects of writing such a business plan and will also give you a franchising business plan that you can use to expand your business after you start making profit out of it. This will be somewhat similar to a microbrewery business plan.

Small Liquor Store Business Plan Summary

2.1 The Business

This business plan for starting a liquor store will be based on the example of Harry’s Liquor Outlet, a small liquor store situated outside Detroit, Michigan. The business will be registered and licensed to sell Liquor.

2.2 Management of Small Liquor Store

The manager will oversee all the operations of the bar will any matters that arise. The supreme authority in this business plan startup liquor store will rest with Harry and his verdict will be final in any matter regarding the business.

2.3 Customers of Small Liquor Store

The next thing that you need to consider when writing a writing business plan for investors is determining the customers of the business who will bring in all the money. Just like a distillery business plan, the main customers here will be the people looking for alcohol.

2.4 Business Target

Our targets are:

• To establish and maintain more than 95% customer satisfaction score.
• To start generating at least $23k in profit a month in 2 years.
• To expand to at least three more cities by the end of the 3^rd

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Harry’s Liquor Outlet will be owned by Harry Castle. He knows this industry inside out as he has worked as a bar tender for more than 10 years. He has recently won a lottery and wants to invest the money and that’s why we are basing this wine and liquor store business plan on his business.

3.2 Why the Small Liquor Store is being started

The next thing to discuss in this liquor store business plan sample is the reason behind starting this business. As stated above, Harry has a lot of experience and interest in this business, so that is the main reason. Another reason for starting this business is that there is no good liquor store in the area and this market gap can be capitalized easily.

3.3 How the small liquor Store will be started

Step1: Create small liquor store business plan

The first needed to start a small liquor store is to have a valid liquor store business plan example pdf. All the aspects of the business from the starting costs to the staff required and the market to be targeted will be included in this business plan. Just like a brewery business plan, having figured out all the details of the business before starting is the most important thing if you want this business to be successful in the longer run.

Step2: Define The Brand

The next step is to make a brand. People these days like to shop from established brands rather than a simple shop. Advertisement and marketing will be used to make a presentable brand for Harry’s Liquor Outlet.

Step3: Establish Physical & Web Presence

We will have to make the store as well as a website. It is noted that more than 50% of the customers prefer to order their liquor online rather than going to a store. We will make a website to cater the needs of these customers.

Step4: Promote and Market

The last and the most important thing to do is to market the brand in such a way as to make it a household name in the area to attract as much business as we can.

Start-up Expenses
Legal	$257,000
Consultants	$0
Insurance	$32,000
Rent	$30,000
Research and Development	$25,000
Expensed Equipment	$51,000
Signs	$3,800
TOTAL START-UP EXPENSES	$398,800
Start-up Assets	$322,000
Cash Required	$345,000
Start-up Inventory	$50,000
Other Current Assets	$223,000
Long-term Assets	$240,000
TOTAL ASSETS	$1,180,000
Total Requirements	$1,578,800
START-UP FUNDING
Start-up Expenses to Fund	$398,800
Start-up Assets to Fund	$1,180,000
TOTAL FUNDING REQUIRED	$1,578,800
Assets
Non-cash Assets from Start-up	$1,552,000
Cash Requirements from Start-up	$364,000
Additional Cash Raised	$56,000
Cash Balance on Starting Date	$33,000
TOTAL ASSETS	$2,005,000
Liabilities and Capital
Liabilities	$30,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$50,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$80,000
Capital
Planned Investment	$1,578,800
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,578,800
Loss at Start-up (Start-up Expenses)	$346,200
TOTAL CAPITAL	$1,925,000
TOTAL CAPITAL AND LIABILITIES	$2,005,000
Total Funding	$1,578,800

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Services of Small Liquor Store

The next point this liquor store business plan template needs to touch is the services it will be providing. You can use this business plan for existing liquor store or start a new business around it.

The services of the liquor store will be focused more on products because this is more of a products business than a services one. The services of Harry’s Liquor Outlet will be:

• Liquor Supply

As there are no good liquor stores in the vicinity, all the retailers who sell liquor in the area will be buying it from us. We will deliver them the products on weekly or monthly basis, as they prefer.

We will also supply liquor to retail customers, bars, and for parties.

• Signature Drinks

We will experiment with different famous liquor drinks and brands and will make cocktails and our own signature liquors to bring diversity in the business.

• Spirit Supply

We will arrange and provide spirits for medical and cleaning use. This will not be a regular service and we will entertain these demands on request of buyers.

• Remote Bar Services for parties

Anyone looking to arrange a party in the area has to buy the liquor from other cities. We will cover all the parties in the area and will provide take-away and delivery services for party liquor supply.

 Marketing Analysis of a Small Liquor Store

Marketing analysis refers to the process of conducting a thorough market research to determine whether or not starting a business makes economic sense. If you want to know how to write a business plan for a liquor store, you need to know how to do marketing analysis.

Here are the details of the marketing analysis that we performed prior to starting a liquor store.

UK Start-Up Visa Business Plan

5.1 Market Trends

One of the key reasons for we are going foropening a liquor store business is that this market is growing at a fast pace. The global liquor industry was worth $1.4 trillion in 2019 and is expected to be worth $2 trillion in the year 2024.

Another reasons for starting the business that we think is worth mentioning in this liquor store business plan example is that the trend of drinking is changing from bars to homes. More people are buying alcohol to consume in the comfort of their own home than are going to bars. So, just like a seafood restaurant business plan, we have an opportunity here.

5.2 Marketing Segmentation

Another important thing to note before we start this business is the marketing segmentation of the industry we are going to enter. Marketing segmentation focuses on the various categories of the market we will be targeting.

The main market segments this liquor store business will be serving are the following:

5.2.1 Individual Customers

The main customers of our products will be the people who need a good drink at the end of a long day. We will cater for the needs of these customers and will make sure that they get the best liquor from us.

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5.2.2 Retail Stores

Retails stores in the area source liquor from other cities and that is not feasible for them. We will offer them better rates and they will purchase the products from us on a regular basis.

5.2.3 Bars

Bars will be one of the bulk customers of our products. They will buy large amounts of liquor on a regular basis. We might offer them a lower rate as a wholesale discount. These customers will pay us on a routine basis and not individually for every purchase/delivery.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Individual Customers	47%	49,000	51,000	53,000	55,000	56,000	10.00%
Retail Stores	30%	34,000	35,000	37,000	39,000	40,000	10.00%
Bars	23%	19,000	20,000	21,000	23,000	24,000	11.00%
Total	100%	102,000	106,000	111,000	117,000	120,000	10%

5.3 Business Target

Our business targets are:

• To establish our name as a dependable and reliable supplier of Grade-A liquor.
• To expand to more locations and make our business a chain of stores.
• To provide the best products and services and gain high customer satisfaction while we are at it.

5.4 Product Pricing

The prices will be mainly based on the prices of the manufacturers we will be sourcing the stuff from. However, we will keep out profit margin low and offer lower prices than the competitors to earn some customers and then we will increase the prices when we have made a name for ourselves. This is the same approach as we used in the gourmet food store business plan.

 Marketing Strategy of Small Liquor Store

Now that we have established all the things necessary for starting a small liquor store, the next thing to focus on is the liquor store marketing plan. There can be a lot of liquor store marketing strategies but we have to find out the one that works the best for our case.

The things that influence the marketing strategy are the following and they are more or less the same as those for a butcher shop business plan.

6.1 Competitive Analysis

Harry’s Liquor Outlet will have the following competitive advantages:

1. The owner of this business has a lot of experience in the liquor business.
2. There is no reputable liquor store in the area where we are going to start this business.
3. We are offering all the major liquor brands and all of them are decided after asking the people of the area which brands they will buy.

6.2 Sales Strategy

• We will use all the social, electronic and print media channels to advertise our business in the area.
• We will have social media pages and our own online store to market and sell the product.
• We will offer discounted rates for the first two months to boost sales in the start.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Liquor Supply	47,000	49,820	52,809
Signature Drinks	37,000	39,220	41,573
Spirit Supply	33,000	34,980	37,079
Remote Bar Services for parties	12,000	12,720	13,483
TOTAL UNIT SALES	129,000	136,740	144,944
Unit Prices	Year 1	Year 2	Year 3
Liquor Supply	$56.00	$64.96	$75.35
Signature Drinks	$33.00	$38.28	$44.40
Spirit Supply	$62.00	$71.92	$83.43
Remote Bar Services for parties	$40.00	$46.40	$53.82
Sales
Liquor Supply	$2,632,000.00	$3,236,307.20	$3,979,363.33
Signature Drinks	$1,221,000.00	$1,501,341.60	$1,846,049.63
Spirit Supply	$2,046,000.00	$2,515,761.60	$3,093,380.46
Remote Bar Services for parties	$480,000.00	$590,208.00	$725,719.76
TOTAL SALES	$6,379,000.00	$7,843,618.40	$9,644,513.18
Direct Unit Costs	Year 1	Year 2	Year 3
Liquor Supply	$55.00	$61.00	$70.00
Signature Drinks	$31.00	$34.00	$40.00
Spirit Supply	$60.00	$67.00	$79.00
Remote Bar Services for parties	$38.00	$41.00	$49.00
Direct Cost of Sales
Liquor Supply	$2,585,000.00	$3,039,020.00	$3,696,644.00
Signature Drinks	$1,147,000.00	$1,333,480.00	$1,662,928.00
Spirit Supply	$1,980,000.00	$2,343,660.00	$2,929,225.20
Remote Bar Services for parties	$456,000.00	$521,520.00	$660,676.80
Subtotal Direct Cost of Sales	$6,168,000.00	$7,237,680.00	$8,949,474.00

Personnel plan

The next thing we need to talk about in this business plan for alcoholic beverage store is the people that we will need to start and run the business. We need to plan the workforce in such a way to run the business with the maximum possible efficiency without being an unnecessary load on the business.

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7.1 Company Staff

Here is a list of the people who will run Harry’s Liquor Outlet:

• Harry Castle will be the owner and CEO of the business.
• 1 Manager will be hired to run the day-to-day operations of the liquor store.
• 1 Cashier will be needed to manage the register.
• 1 Web Developer will be hired to run the online store and social media pages of the business.
• 3 Drivers for the home delivery of products ordered online.
• 2 Cleaners.
• 1 Accountant.

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$14,000	$15,400	$16,940
Cashier	$9,000	$9,900	$10,890
Web Developer	$9,000	$9,900	$10,890
Drivers	$30,000	$33,000	$36,300
Cleaners	$14,000	$15,400	$16,940
Accountant	$8,000	$8,800	$9,680
Total Salaries	$84,000	$92,400	$101,640

Financial Plan

Lastly, we need to discuss the cost that will be incurred by Harry to start this business. Let’s see we need how much to start a liquor store.

Harry will have to arrange money for the following:

• Acquiring a location to start the store.
• Buying the stock to start the business.
• The money needed for the salaries of the staff for the first 3 months.
• The money needed to buy vehicles for delivery.
• The cost of making an online store and the allied social media pages.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.15%	8.20%
Long-term Interest Rate	8.28%	8.37%	8.40%
Tax Rate	24.01%	24.10%	24.30%
Other	0	0	0

 

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5344
Monthly Revenue Break-even	$133,200
Assumptions:
Average Per-Unit Revenue	$236.00
Average Per-Unit Variable Cost	$0.69
Estimated Monthly Fixed Cost	$161,500

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$6,379,000	$7,843,618	$9,644,513
Direct Cost of Sales	$6,168,000	$7,237,680	$8,949,474
Other	$0	$0	$0
TOTAL COST OF SALES	$6,168,000	$7,237,680	$8,949,474
Gross Margin	$211,000	$605,938	$695,039
Gross Margin %	3.31%	7.73%	7.21%
Expenses
Payroll	$84,000	$92,400	$101,640
Sales and Marketing and Other Expenses	$120,000	$123,000	$126,000
Depreciation	$2,540	$2,480	$2,300
Leased Equipment	$0	$0	$0
Utilities	$3,040	$3,100	$3,200
Insurance	$2,060	$2,150	$2,300
Rent	$3,200	$3,400	$3,700
Payroll Taxes	$26,000	$28,000	$30,000
Other	$0	$0	$0
Total Operating Expenses	$240,840	$254,530	$269,140
Profit Before Interest and Taxes	($29,840)	$351,408	$425,899
EBITDA	($29,840)	$351,408	$425,899
Interest Expense	$0	$0	$0
Taxes Incurred	($5,968)	$70,282	$85,180
Net Profit	($23,872)	$281,127	$340,719
Net Profit/Sales	-0.37%	3.58%	3.53%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$56,000	$60,480	$65,318
Cash from Receivables	$16,000	$17,280	$18,662
SUBTOTAL CASH FROM OPERATIONS	$72,000	$78,480	$84,758
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$72,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$36,000	$38,000	$40,000
Bill Payments	$21,000	$22,000	$23,000
SUBTOTAL SPENT ON OPERATIONS	$57,000	$60,000	$63,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$57,000	$61,560	$66,485
Net Cash Flow	$13,000	$14,000	$15,000
Cash Balance	$28,100	$29,000	$31,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$289,000	$323,680	$356,048
Accounts Receivable	$25,000	$28,000	$31,472
Inventory	$3,900	$4,368	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$298,000	$333,760	$375,146
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$18,700	$20,944	$23,562
TOTAL LONG-TERM ASSETS	$27,000	$30,240	$34,020
TOTAL ASSETS	$301,000	$337,120	$379,260
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$19,000	$21,280	$23,919
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$14,500	$16,240	$18,254
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$32,600	$32,000	$33,000
Retained Earnings	$56,000	$61,040	$67,144
Earnings	$198,000	$215,820	$237,402
TOTAL CAPITAL	$274,000	$298,660	$328,526
TOTAL LIABILITIES AND CAPITAL	$289,000	$337,120	$379,260
Net Worth	$271,000	$295,390	$324,929

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.01%	7.77%	8.61%	3.00%
Percent of Total Assets
Accounts Receivable	9.17%	10.16%	11.26%	9.80%
Inventory	5.40%	5.98%	6.63%	9.90%
Other Current Assets	2.10%	2.33%	2.58%	2.40%
Total Current Assets	148.80%	151.00%	152.00%	158.00%
Long-term Assets	11.92%	11,89%	11.93%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.65%	4.69%	4.73%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.50%	7.56%	7.63%	7.38%
NET WORTH	100.40%	101.20%	102.13%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	95.10%	97.67%	100.40%	99.00%
Selling, General & Administrative Expenses	93.90%	96.44%	99.14%	97.80%
Advertising Expenses	1.64%	1.68%	1.73%	1.40%
Profit Before Interest and Taxes	40.90%	42.00%	43.18%	33.90%
Main Ratios
Current	37	38	38	32
Quick	32	32.24	33.046	33
Total Debt to Total Assets	0.20%	0.19%	0.18%	0.40%
Pre-tax Return on Net Worth	74.20%	75.00%	75.20%	75.00%
Pre-tax Return on Assets	93.25%	97.91%	102.81%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	32.14%	33.14%	34.16%	N.A.
Return on Equity	55.96%	57.69%	59.48%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.9	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.5	34.125	34.6	N.A.
Accounts Payable Turnover	16.3	16.4	16.54	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.03	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$236,000	$249,216	$263,172	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.79	0.82	0.85	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	27.5	28.1	29.4	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

 

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